Policy Dive: AI in the First Week of Trump

By Emily Wolfteich, Senior Industry Analyst at Government Business Council

Image source: FotografieLink, istock.com

On Thursday, President Donald Trump signed an executive order (EO) to “remove barriers to American AI innovation” and “take action to enhance America’s AI leadership.” This EO follows Trump’s day-one “Initial Rescissions of Harmful Executive Orders and Actions,” a mandate that revokes 78 Biden-era executive orders. Among these was 2023’s Executive Order 14110, for the Safe, Secure, and Trustworthy Development and Use of Artificial Intelligence.

The rescission of 14110 and subsequent new EO were not unexpected. The administration and Republican party writ large contend that EO 14110 was “dangerous” and promoted “left-wing ideas,” such as setting guardrails around privacy and discrimination and requiring developers to disclose potential security risks to the government. Where does federal guidance stand with the new President, and what does his new Executive Order mean for Americans? 

The Basics of Trump’s First-Week EO

Revocation of Biden-era AI policies: The order revokes existing AI policies and directives it calls “burdensome requirements” on the private sector that “threaten American technological leadership,” particularly those established under Executive Order 14110.

Commitment to global AI leadership: It emphasizes the United States’ policy to sustain and enhance its global dominance in AI to promote “human flourishing,” economic competitiveness, and national security.

Development of an AI action plan: The order mandates the creation of an action plan within 180 days to achieve the stated policy goals. This task is assigned to key presidential advisors, including the Assistant to the President for Science and Technology (Michael Kratsios), the Special Advisor for AI and Crypto (David Sacks), and the National Security Advisor (Mike Waltz).

Review and revision of existing guidance: It instructs relevant officials to review all policies, directives, regulations, and actions taken under the revoked Executive Order 14110. Any actions found to be inconsistent with the new policy are to be suspended, revised, or rescinded. The Director of the Office of Management and Budget is directed to revise specific memoranda (M-24-10 and M-24-18) within 60 days to ensure consistency with the new AI policy.

Overall, the EO is vague, focusing on repealing rather than replacing with substantive guidance – that will have to wait several months until the Action Plan and new OMB guidance is released. 

Image source: utah778, istock.com

The Rundown

Given the EO and other statements made by the new administration, what can we expect going forward?

Likely to change:

Regulation.

The administration, and particularly AI Czar David Sacks, has made it clear they believe regulation hurts innovation. The administration will likely prioritize speed over caution in an effort to keep America at the forefront of AI development. In particular, the rescission of EO 14110 means that companies are no longer required to disclose potential risks of their algorithms with the government, a mandate that critics described as confusing and arbitrary but that proponents argued was necessary for security.

Not likely to change:

Some previous federal AI guidance.

For now, some pieces of AI guidance (including last-minute Biden executive orders) remain on the books. Given their focus on cybersecurity and infrastructure, two crucial building blocks for building US AI dominance, it seems unlikely that they will be revoked. These include:

  • Executive Order 14144, “Strengthening and Promoting Innovation in the Nation’s Cybersecurity” (2025)
  • Executive Order 14141, “Advancing United States Leadership in Artificial Intelligence Infrastructure” (2025)

Unclear:

Small business competition. The administration’s initial turn toward tech giants, as well as the revocation of DEIA policies, may signal future impacts on procurement policies that promote women, minority, or veteran-owned businesses. 

What’s Next?

New guidance. The EO directs OMB to revise and reissue rules around AI acquisition and governance within 60 days, and a broader AI Action plan to be completed within six months.

Increased focus on compliance: Without federal regulatory standards for AI use, ensuring that AI systems comply with other laws around data privacy and usage will become even more important, as litigation may become a replacement for regulation.

The Takeaway

Image source: pcess609, istock.com

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